Installed Building Products, Inc. (IBP - Free Report) has acquired a Cherry Hill, NJ-based gutter installation service provider, Storm Master Gutters. However, financial terms of the deal are not yet disclosed.
Installed Building — one of the nation's largest new residential insulation installers and a diversified installer of complementary building products — will be able to expand footprint across several compelling markets in the Northeast, Mid-Atlantic and Southeastern United States.
Founded in 1977, Storm Master mainly provides gutter installation services to residential and multi-family customers throughout New Jersey, Pennsylvania, Delaware, Maryland, Massachusetts, Virginia, New York, West Virginia, as well as Tennessee.
With total revenues of $20 million in 2019, Storm Master’s portfolio of both residential and multi-family customers aligns well with the current growth that Installed Building has been experiencing in multi-family markets across the country.
Inorganic Strategies Bode Well
Acquisitions remain a key component of Installed Building’s growth strategy. The company has a robust pipeline of acquisition opportunities across multiple geographies, products and end markets.
As part of the ongoing strategy to expand geographically and boost its market share in certain markets, the company completed three business combinations during the first six months of 2020. The largest of these buyouts is that of Royals Commercial Services, Inc. in February 2020.
In August 2020, Installed Building acquired two branches in North Charleston and Pooler from Energy One America, LLC to expand presence in South Carolina as well as Georgia. The two branches will operate as Charleston Insulation and Foam, and Savannah Insulation and Foam, respectively. The branches will provide spray foam, fiberglass and air barrier installation services to residential, multi-family and commercial customers (read more: Installed Building Expands Reach in South Carolina & Georgia).
Acquisitions contributed 35.2% to total revenues in the first six months of the year and 60.8% in second-quarter 2020.
Shares of this Zacks Rank #1 (Strong Buy) company have gained 52.6% in the past year compared with the industry’s 31.1% rally. You can the complete list of today’s Zacks #1 Rank stocks here.
Installed Building — which shares space with TopBuild (BLD - Free Report) , Patrick Industries Inc. (PATK - Free Report) and Aegion Corporation (AEGN - Free Report) in the same industry — is currently a great pick in terms of growth investment, supported by a Growth Score of A.
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